Who is Letitia James, top New York lawyer who took on Trump, now accused of mortgage fraud?

New York Attorney General Letitia James, who fought a civil fraud case against the Trump Organization, now faces a federal criminal referral over claims of mortgage fraud.

James had earlier secured a $454 million civil fraud ruling against Donald Trump, after alleging that he inflated his wealth by billions to secure favourable loan and insurance deals.

The federal criminal referral was made by the Director of the US Federal Housing Finance Agency, William J. Pulte. He sent the letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche.

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The referral includes a list of possible charges, including wire fraud, mail fraud, bank fraud, and making false claims to a financial institution.

In this report, we explain who Letitia James is, revisit her civil fraud case against Trump, and look into what the referral accuses her of.

Who is Letitia James?

Letitia “Tish” James is the 67th Attorney General of New York.

She is the first Black woman elected to a statewide office, the first Black person to become the state’s attorney general, and the first woman chosen for the role (Barbara Underwood, a previous female attorney general, had been appointed to the position).

James grew up in Brooklyn with her seven siblings. She studied at public schools and went on to earn her law degree from Howard University in Washington DC. She began her career as a public defender before stepping into New York’s political scene.

After being elected as attorney general, James promised to “take that power back” from big businesses and corrupt leaders.

“The law is the great equaliser and the biggest pillar of our democracy,” she said during her 2019 inaugural speech.

“I will shine a light into the murkiest of swamps and act as a steward of justice.”

Before this role, James served as New York City’s Public Advocate, a job meant to help people deal with issues involving public services and to keep an eye on how City Hall operates.

The position made her a well-known figure in the city. She was often seen at crime scenes, speaking to the press, and attending events to raise public concerns.

James has also served on the City Council, and worked as both a public defender and an assistant state attorney general.

What are the allegations against Letitia James?

William Pulte, Director of the Federal Housing Finance Agency (FHFA), sent a letter to Attorney General Pam Bondi and Deputy AG Todd Blanche, accusing Letitia James of “falsifying records” to get home loans for a property in Virginia, which she claimed was her “principal residence” in 2023, while still serving as a prosecutor in New York.

“Ms. James was the sitting Attorney General of New York and is required by law to have her primary residence in the state of New York - even though her mortgage applications list her intent to have the Norfolk, VA, property as her primary home,” the letter read, according to The New York Post.

“It appears Ms. James’ property and mortgage-related misrepresentations may have continued to her recent 2023 Norfolk, VA property purchase in order to secure a lower interest rate and more favourable loan terms.”

The letter also stated that in February 2001, James bought a five-family building in Brooklyn but “consistently misrepresented the same property as only having four units in both building permit applications and numerous mortgage documents and applications.”

“Attorney General James is focused every single day on protecting New Yorkers, especially as this Administration weaponises the federal government against the rule of law and the Constitution. She will not be intimidated by bullies - no matter who they are,” a spokesperson from her office was quoted as saying by the Post.

Pulte included documents showing James had bought another property with her father listed as co-signer but that the two were falsely described as “husband and wife” in 1983 and again in 2000, the report said.

“While this was a long time ago, it raises serious concerns about the validity of Ms. James representations on mortgage applications,” Pulte said.

He added that loans for the second property might have allowed James to get a mortgage rate cut of up to 1%, along with lower monthly payments, through the federal Home Affordable Modification Program (HAMP), since the property was listed as having only four units.

Turley described it as “perfectly crushing” that James could now face criminal charges for similar issues she had earlier accused Trump and his family of.

Trump, since his return to the White House, has repeatedly criticised James. On Monday, he posted on Truth Social: “Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY.”

James is now said to be investigating claims of insider trading tied to Trump’s 90-day pause on tariffs, the Post reported.

The day after Trump defeated Kamala Harris, she made it clear that she wanted to continue pursuing her legal cases against him, even if there was “revenge or retribution” to come.

She admitted, “we did not expect this result,” but made it clear, “we are prepared to respond to this result.

“And my office has been preparing for several months because we’ve been here before,” James said during a news conference. “We faced this challenge before, and we used the rule of law to fight back.

“And we are prepared to fight back once again, because as the attorney general of this great state, it is my job to protect and defend the rights of New Yorkers and the rule of law,” she said.

Letitia James vs Donald Trump: What happened in the civil fraud trial?

James began looking into Trump shortly after becoming attorney general in 2019.

She took legal action against the Republican’s administration over its immigration and environmental policies during his time in the White House.

James also took over an existing state case involving Trump’s charitable foundation, which had been filed before her term began. That case ended in a settlement that required Trump to pay a $2 million fine.

She later filed a civil case against Trump, claiming that his company misled banks, insurance firms and others by inflating the value of assets and his own net worth in financial documents.

“It’s the art of the steal,” she said when she brought up the case, using the name of Trump’s book “The Art of the Deal” to make her point.

A New York judge ruled in James’s favour, finding Trump and his company guilty of fraud. As a result, the court decided to strip some of his business licences as a form of penalty.

Manhattan Supreme Court Justice Arthur Engoron issued a 34-page decision which required Trump to give up control of key New York properties, such as Trump Tower in Midtown. These were to be handed over to a court-appointed official known as a receiver.

In his decision, the judge wrote that the receiver must be chosen “to manage the dissolution of the cancelled” business certificates of the Limited Liability Companies, or LLCs, that fall under the Trump Organization.

Trump was ordered to pay a $454 million civil fraud penalty after James accused him of inflating the value of his properties.

With inputs from agencies